Music streaming company Spotify has been hit with a $1.6 Billion lawsuit by Wixen Music Publishing Inc last week for allegedly using thousands of songs, including those of Tom Petty, Neil Young and the Doors, without a license and compensation to the music publisher.
Wixen, an exclusive licensee of songs such as “Free Fallin” by Tom Petty, “Light My Fire” by the Doors, “(Girl We Got a) Good Thing” by Weezer and works of singers such as Stevie Nicks, is also seeking injunctive relief.
According to Wixen in the lawsuit filed in a California federal court, it said Spotify failed to get a direct license from them that would allow it to reproduce and distribute the songs.
Wixen also alleged that Spotify outsourced its work to a third party, licensing and royalty services provider the Harry Fox Agency, which was “ill-equipped to obtain all the necessary mechanical licenses”.
In May, Spotify agreed to pay more than $43 million to settle a proposed class action alleging it failed to pay royalties for some of the songs it makes available to users.
The Stockholm, Sweden-based company, which is planning a stock market listing this year, has grown around 20 percent in value to at least $19 billion in the past few months.
Spotify declined to make any comment after being contacted.
